Multnomah County PUD

Measure No. 26-52

Referred to The Voters of Multnomah County by Initiative Petition.

AUTHORIZES MULTNOMAH COUNTY PEOPLE'S UTILITY DISTRICT TO IMPOSE SPECIAL LEVY

QUESTION: If formed, shall Multnomah County People's Utility District impose one-year special levy of $.003 per $1000 assessed value in 2004?

This measure may cause property taxes to increase more than three percent.

SUMMARY: This measure may be passed only at an election with at least a 50 percent voter turnout.

The measure authorizes the Multnomah County People's Utility District (PUD), if formed, to levy a tax of $.003 per $1000 of assessed valuation to finance an engineer's report on revenue bonds for acquisition or construction of the utility system and the cost of an election to authorize revenue bonds, if held.

The one-time levy raises a total of about $127,000 to pay for the engineer's report. The levy for a house with an assessed value of $150,000 would be about 45 cents.

The estimated tax cost for this measure is an ESTIMATE ONLY based on the best information available from the county assessor at the time of estimate.


EXPLANATORY STATEMENT

Authorize Multnomah County People's Utility District Special Levy

On February 12, 2003, an electors' petition was filed with Multnomah County Elections Division for formation of the Multnomah County People's Utility District (PUD) to supply public utility service. As allowed by statute the elector's petition includes a proposal for the authorization of the district to impose a special levy of $.003 per $1000 of assessed value to finance an engineer's report on revenue bonds for acquisition or construction of the utility system and the cost of an election to authorize revenue bonds, if held. On June 12, 2003, the Multnomah County Board of Commissioners found that the petition complies with Oregon law. The Board is required by law to submit the special levy to the electors in the affected territory.

The Measure would authorize the Multnomah County People's Utility District (PUD), if formed, to levy a tax of $.003 one thousand dollars of assessed valuation, to finance an engineer's report on revenue bonds for acquisition or construction of the utility system and the cost of an election to authorize revenue bonds, if held. The proposed levy would result in total estimated revenues of $127,000. The levy for a house with an assessed value of $150,000 would be 45 cents. The levy would be a one time levy.

This measure may be passed only at an election with at least a 50 percent voter turnout.

Submitted by:
Board of County Commissioners
Multnomah County



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN FAVOR

Invest in Your Energy Future

By voting YES on this question you are creating an initial pool of funds for the People’s Utility District.

Why does the P.U.D. need a tax? Isn’t it supposed to make money?

The P.U.D. needs initial funding. This levy raises about $127,000. The money is used for an engineering report to decide which assets to buy from the private company and how much to pay for them.

When the P.U.D. starts operating as a utility, it pays its expenses with the revenues it receives from electricity users, like any utility.

What type of tax is it?

It’s a property tax that will be included on your 2004 property tax statement.

How much is it?

The tax is 30 cents on every $100,000 of assessed value of your property. If your home’s assessed value is $150,000 your tax equals 45 cents and you only have to pay it one time.

Why is the tax levy on the ballot?

It’s required by law.

Why does it say my taxes will increase more than 3%?

This is false and misleading language was inserted by the county attorney. It supposedly means that, if all property values in the county increase by 3%, then this measure would result in an overall increase of more than 3%. It is extremely misleading.

The P.U.D. levy by itself will not increase your taxes more than 3%. In fact, the amount of the P.U.D. levy is 1/10,000 of 3%. If it was 3%, it would raise $1.27 billion, when in fact it raises only $127,000.

Can I vote for the P.U.D. & against the Tax Levy?

Yes. They are two separate questions.

Multnomah’s County People’s Utility District - the best 45-cent investment you’ll ever make!

Vote Yes on the P.U.D. – Vote Yes on the Tax Levy

(This information furnished by Liz Trojan, Oregon Public Power Coalition)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

The people of Multnomah County have been taxed enough.

Adding a costly new bureaucracy is counter-productive.

There is no evidence that a new government entity would be an efficient way to deliver power; in fact, the City’s recent experience with the water billing system would indicate that such an entity would be remarkably inefficient.

Most of the rest of the world has arrived at the conclusion that central planning doesn’t work, a lesson gained after millions have suffered needlessly. It’s time we pay attention to those hard learned lessons here in Multnomah county, where the unemployment rate is squeezing our families even further. Using condemnation or other forceful means to take over a privately held utility would be intensely hostile signal to the shrinking local business community, a signal we can ill afford to send at a time when we need a healthy and growing private sector to create jobs.

The acquisition costs alone would result in a new government entity with over a billion dollars in debt. Local, state, and national politicians have already placed a heavy enough burden on our children and future generations. This is a billion dollar gamble we cannot afford to make.

Let’s not let well-intentioned incompetents cause our gas and electrical bills to skyrocket the way our water bills have.

Vote “NO” on Measure 26-52.

Libertarian Party of Multnomah County
Dan Fitzgerald, Chair
(800) 829-1992

(This information furnished by Dan Fitzgerald, The Libertarian Party of Multnomah County)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

Voting NO on both Measure 26-51 & 26-52:

Stops the breakup of Pacific Power and PGE by a government owned utility.

Stops the creation of a new layer of government with over 300,000 taxpayers and ratepayers.

Stops the Multnomah County PUD from levying any new property taxes.

Stops years of expensive legal fights in a forced government takeover of part of two local utilities. A government takeover might be good for the legal business, but not for the community.

Stops a billion-dollar PUD debt for an electricity system with no guaranteed source of low-cost electricity.

We can stop all the risks and costs before they start by voting NO on both Measures 26-51 & 26-52.

Greg Mowe
Attorney Specializing in Utility Condemnation Law
Stoel Rives LLP

(This information furnished by Greg Mowe, Stoel Rives LLP)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

We are the 3,700 local union electrical workers who are dedicated to providing you safe, reliable power.

Our Local Union is not opposed to public power. But, a PUD is wrong for Multnomah County. Proponents of this measure have not taken the time to consider the real-world effects of their ideas.

The new PUD would have to pay more than $1 billion just to take over the poles and wires that currently belong to PGE and Pacific Power. As ratepayers, we’d have to repay this billion-dollar cost through our rates. We’d be paying for something we’ve already got.

After paying more that $1 billion, the new PUD still wouldn’t have any electricity. No one can say for sure where they would get it or how much it would cost.

The boundary lines of this new PUD are poorly thought out and make no sense. They would create a “Swiss cheese” service territory full of holes. It would cost millions of extra dollars to serve this fractured service territory.

It makes no sense to pay more for less reliability.

An inexperienced government utility would be a new layer of government with huge start-up costs. The costs of setting up a new utility – engineering, maintenance, emergency response, system reliability – would be in the millions.

On top of all of this, a PUD would also raise our property taxes. This is simply not the right time for new property taxes.

We work on electrical systems every day, and we understand what it takes to bring you safe, reliable electricity. This proposal for a government-owned utility just doesn’t make sense.

Join the electrical workers of IBEW Local 125 in voting NO on both Measures 26-51 and 26-52.

(This information furnished by Bill Miller, IBEW Local 125)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

New Property Taxes and a Billion Dollar Debt

As a parent, an educator, small business owner and electricity consumer in Multnomah County, I am voting “no” on Measure 26-52 because of the serious consequences of a government takeover of Pacific Power and PGE.

Here is why a takeover is so risky and costly:

We would have to pay new property taxes and pay more than $1 billion for something we’ve already got – a reliable electric system. Especially at a time when there are so many other pressing needs in our community going unmet.

A takeover by a PUD would hurt programs that many of us count on. Our schools, affordable housing programs, low-income energy programs, low-income energy assistance, energy efficiency and renewable energy programs would all lose millions of dollars per year under this proposal.

Measures 26-51 & 26-52: Bad for electricity customers, our community, our environment and schools.

Please join me in voting “no” on Measures 26-51 and 26-52.

Mara Woloshin
Small Business Owner

(This information furnished by Mara Woloshin)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

To stop the government takeover of PGE and Pacific Power in Multnomah County, vote NO on Measures 26-51 and 26-52.

A new PUD is another layer of government. It would mean new property taxes.

It would cost more than $1 billion for a government owned utility to take over the poles, wires and substations that currently belong to PGE and Pacific Power. We’d have to repay that billion dollars in our rates.

The court battles would drag on for years, making lawyers rich, but providing no benefit to citizens. The idea that the government can takeover a business that doesn’t want to sell is just not right.

The Oregon Office of Energy concluded that a new PUD can’t promise lower rates. Rates could easily be higher – especially since no one knows where the new government utility would get its power.

The existing PGE and Pacific Power service territory would be cut into pieces. It would cost millions to serve this fractured system, with less reliability.

A government takeover means we’d lose millions in utility taxes and fees that now support local services such as police, firemen, schools, low-income energy assistance, weatherization and affordable housing.

It makes no sense to raise property taxes and take on more than $1 billion in new debt to create a government owned utility with no operating experience, no source of power and no idea of how high its rates will be.

Keep the reliable power system we already have and vote NO on both Measures 26-51 & 26-52.

(This information furnished by Valarie Edwards, Citizens Against the Government Takeover)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.



Measure No. 26-52 | Multnomah County PUD

ARGUMENT IN OPPOSITION

Confused about the complexity, costs and risks of forming a new government owned utility? Here’s a more complete summary of Measures 26-51 & 26-52:

Establishes a new government owned utility, the Multnomah County People’s Utility District (PUD), with authority to takeover part of Pacific Power’s and Portland General Electric’s service territory as an electric utility serving most of the county.

The PUD would have a five-member Board of Directors - no experience required-- elected from within the district to run the PUD and set electric rates.

The PUD would include much of Multnomah County except areas required by law to be excluded, and those incorporated areas like Gresham, Portland, Troutdale and others where a majority of voters vote NO.

The PUD would have authority to levy and collect taxes, to exercise the power of eminent domain, to borrow money and incur indebtedness, to issue and sell voter-approved revenue bonds and general obligation bonds, and to acquire facilities for the distribution of energy from existing utilities within the boundary of the PUD.

After the votes, the taxes, the years of condemnation trials and the ratepayer debt for an electricity system, a PUD would have to buy the electricity for more than 300,000 homes and businesses from somewhere -- because it has none of its own.

Concerned? Vote NO on Measures 26-51 & 26-52.

Please review the statute at www.leg.state.or.us/ors/261.html for more details about all the taxing and takeover powers of a new people’s utility district.

(This information furnished by Valarie Edwards, Citizens Against the Government Takeover)

The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.